XJZY(SZ:002332)2024-04-25 07:30Investment Rating - The report maintains a "Recommended" investment rating for the company [1] Core Views - The company reported a slight revenue beat in Q1 2024, with a total revenue of 1.038 billion yuan, representing a year-over-year increase of 8.42% [1] - The overall revenue for 2023 was 4.123 billion yuan, down 5.85% year-over-year, with a net profit of 563 million yuan, down 24.86% year-over-year [1] - The report highlights that the risks associated with centralized procurement in the formulation segment have largely been resolved, and the company continues to see growth in hard-to-copy first generic products and steady progress in innovative product development [1] Financial Performance Summary - The company’s revenue for the formulation segment in 2023 was 2.278 billion yuan, down 12.4% year-over-year, with self-operated product revenue at 2.109 billion yuan, down 15% [1] - The raw material drug segment generated revenue of 1.786 billion yuan, up 3% year-over-year, with self-operated raw material drug revenue at 880 million yuan, up 10% [1] - The report projects revenues of 4.123 billion yuan, 4.736 billion yuan, 5.520 billion yuan, and 6.286 billion yuan for the years 2024 to 2026, respectively [4] Investment Recommendations - The report suggests that the company, as a leading integrated enterprise in the steroid hormone raw material and formulation industry, is expected to see long-term growth due to the resolution of centralized procurement risks for major products, gradual release of new products, and continuous expansion in the regulated market for raw materials [1] - The projected net profits for 2024, 2025, and 2026 are 672 million yuan, 835 million yuan, and 996 million yuan, respectively, with corresponding PE ratios of 19.13, 16.02, and 12.91 [4]